UBS Warburg's $285 million deal for Nellson Nutraceutical oversubscribed days after syndication launched, with the $260 million "B" term loan flexing down 1/2% to LIBOR plus 3%. The credit backs the Irwindale, Calif-based nutritional bar and powder manufacturer's acquisition of Bariatrix Products International, another bar and powder manufacturer. The deal also includes a $25 million revolver. Leverage is expected to be 3.5 times debt-to-EBITDA after the transaction is completed. The total purchase price for Bariatrix could not be ascertained. Equity firm Fremont Partners purchased Nellson last October for $300 million (LMW, 11/18). A UBS official declined to comment and a Fremont spokesman did not return calls before press time.
The $265 million deal for ALARIS Medical Systems led by UBS and Citigroup also received a hot reception, with the $235 million "B" loan oversubscribed four times and flexed down 1/2% to LIBOR plus 23/4%. The deal also has a $30 million revolver priced at LIBOR plus 3%. The banker said the credit was well received because ALARIS is a seasoned issuer. The facility is part of the medication safety device company's recapitalization plans, which also include an offering of shares of common stock and a senior subordinated notes component (LMW, 6/2). Bankers at UBS and Citi declined to comment. William Bopp, senior v.p. and cfo of ALARIS, did not return calls before press time.